Retirement ages set to go

Ending fixed retirement ages raises complicated issues

People could soon be able to continue working beyond 60 or 65 under the terms of an initiative aimed at ending age discrimination.

The plan being examined by a government working party has been welcomed by pensioner groups.

The UK has five years before it must implement the European ban on fixed retirement ages.

Older workers...have a tremendous amount to offer to employers and the economy

Age Concern spokesman Andy Allsopp

The charity Age Concern says the European directive has too many loopholes allowing employers to bar older people from occupations.

It says such a scenario could arise on the grounds of inability to take on physically demanding jobs.

Group spokesman Andy Allsopp told BBC News Online: "We are in favour of a flexible approach to retirement.

"We are pleased that the government is beginning to grasp the nettle."

The charity wants the UK Government to go further than the European directive and introduce comprehensive anti-age discrimination laws covering a wide range of sectors, including banking and healthcare.

Mr Allsopp said: "Older workers, aged 50-55 and upwards, have a tremendous amount to offer to employers and the economy."

The charity has estimated the economy could benefit from an extra £16bn generated each year by older workers.

The employers' organisation, the CBI, has warned new legislation must still take into account an older person's ability to do the job.

Doing away with contractual retirement ages without consulting employers is not the solution

Digby Jones, CBI Director-General

It has also expressed concern about the possibility of the abolition of contractual retirement.

It says there are many physical jobs where age is a factor and any new laws would have to take this into account.

CBI Director-General Digby Jones said: "There is a need to raise the level of employment among older workers, given skills shortages and an ageing population.

"But doing away with contractual retirement ages without consulting employers is not the solution."

Costly litigation

He said: "Flexibility - not a 'one size fits all' solution - has to be the name of the game."

Mr Jones said government research showed two-thirds of employers were happy to keep people on beyond retirement age by mutual agreement.

But he warned that before making any firm decisions, the government should look at the US where, since lifting the age limit, some firms have experienced increased costly litigation involving older workers.